FX.co ★ Dollar Slips on Renewed Tariff Tensions

The dollar index declined towards 99 on Monday, losing the gains from the previous week amid deteriorating investor sentiment due to renewed trade tensions. This downturn was prompted by President Donald Trump's announcement that the United States will increase tariffs on steel and aluminum imports to 50%, effective June 4. Further tension arose with China as Beijing dismissed Trump's assertion of a trade agreement violation made in Geneva last month, casting doubt on the possibility of an imminent dialogue between the nations' leaders. Nonetheless, Kevin Hassett, Director of the National Economic Council, mentioned over the weekend that a discussion between Trump and Chinese President Xi Jinping could happen as soon as this week. Investors are now shifting their attention to a range of upcoming U.S. economic data releases, including the much-anticipated monthly employment report on Friday, which could provide additional insights into the economic impacts of these evolving trade policies.